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Rautaruukki Oyj (HEL:RTRKS) Press release 28 October 2008
Rautaruukki is strengthening its business in special products and parts processing with the start of long-term partnership with VR, Finland's rail transport provider, to deliver special steels for freight wagons. Deliveries under the new contract will continue until 2012 and will be worth a total of around EUR 7 million by the end of 2009.
Ruukki will deliver high-strength Optim steels and wear-resistant Raex steels to VR's workshop in Pieksämäki, Finland, where they will be made into sludge wagons and wagons for carrying steel coils, iron ore and timber. The contract also includes cutting and edging wagon parts at Ruukki's steel service centres in Seinäjoki and Raahe, from where they will be delivered to VR for welding and assembly. In addition, future parts deliveries will also make use of Ruukki's laser cutting and welding expertise at the steel service centre in Uusikaupunki.
"Ruukki's high-strength steels enable lighter wagon structures than earlier. This in turn means higher payloads without increasing total wagon weight. Thanks to the multiplying effect of wagon performance, transport will be much more efficient," says development manager Juha Mälkiä from VR Cargo. "Ruukki is an extremely dependable supplier and delivery times have been kept to, which has enabled production planning way into the future. Another definite advantage has been good, consistent steel quality from one delivery lot to the next," confirms Markku Närhi, buyer at VR's Pieksämäki workshop.
Ruukki and VR have worked together on various development projects for a couple of years. "Development work in the planning of new wagon types and joint projects in respect of special steel grades have built up mutual expertise and both parties want to continue this work," says Senior Vice President Ilkka Homanen, from Ruukki Metals.
For further information, please contact: Ilkka Homanen, Senior Vice President, Ruukki Metals, tel. +358 20 592 9330 Markku Närhi, Buyer, VR Pieksämäki workshop, tel. +358 3073 7621
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries. The company has a wide selection of metal products and services. Rautaruukki has operations in 26 countries and employs 15,000 people. Net sales in 2007 totalled EUR 3.9 billion. The company's share is quoted on NASDAQ OMX Helsinki (Rautaruukki Oyj: RTRKS). The Corporation uses the marketing name Ruukki.
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